Are you watching this base building process? Looks like it’s about to be a springboard. Take a look at FireEye (FEYE) (January 08, 2015)
I want to look at FireEye ( NASDAQ:FEYE ). This is a security software firm; that industry has kind of grown. This stock has been in a base, it seems like forever, but it’s starting to perk up. You can see just in the last couple of day’s, like today, volume was really good, nice move today but it still is in consolidation with what I would say at $34.00 as resistance.
On the membership website we have price alerts where we can type in specific alerts, like if my alert at $34.00 is hit then members will get an email sending them this portion of the video giving them my analysis. My idea is this, if the stock starts moving above $34.00, I don’t say like just buy it reflexively at 34.00 because that’s up where resistance is; you’re expecting the unexpected, you’re expecting the stock to breakout where it hasn’t before.
However, this is the 200-day moving average and it’s gradually drifting closer to the price. So when this long base ultimately tests this 200-day average a lot of times that’s when the breakout is going to occur. So I want you to be watching this stock as it hits about $34.00. Because if you’re going to see a breakout, obviously this is a math thing, it has to go through $34.00 too. So $34.00 should bring your attention back to this stock.
I taught a fairly involved though simplistic webinar on the ADX indicator last night and that was pretty well received. I’m just pointing this out because there’s a lot of things that are kind of close to happening here. You’re close to getting a buy signal on the DI indicators and we’ve already got a little bit of a buy signal, a little bit on this strength indicator.
But the bottom line is this, this is, in my view, this is pretty close to taking off and I don’t want you to miss it and then look at it when it’s up at $38.00 or $39.00 thinking I wish I’d watched for it to breakout of a base. So I’ve given you the alert, you want about $34.00, if the stock starts trading there then watch it closely because it’s likely to breakout higher.
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